Municipal bonds offer tax-exempt income with lower default risk than similarly rated corporate bonds, making them attractive for higher-income investors. Long-duration munis are well-positioned to benefit from a potential decline in long-term interest rates. Closed-end funds provide diversified exposure but vary meaningfully in leverage, credit risk, distribution strategy, and discounts to NAV.
BNY Mellon Municipal Bond Infrastructure Fund is maintained at a Hold rating due to ongoing sensitivity to high-interest rates and aggressive leverage. DMB offers a 4.6% tax-advantaged yield, attractive for high-income investors seeking federally tax-exempt income, but lacks upside in equity bull markets. Heavy allocation to long-dated municipal revenue bonds and 35% leverage creates significant interest rate risk, suppressing NAV and share price.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
Curtis Ellergodt Rothschild Investment LLC | 30,000 | $331,200 | $278,700 | -$52,500 | -15.85% |
| BZ Brandon Zatopek Commonwealth Equity Services LLC | 20,489 | $226,200 | $190,342.81 | -$35,857.19 | -15.85% |
| PER Paul E. Rasmussen SIT INVESTMENT ASSOCIATES Inc. | 873,968 | $9.44M | $8.46M | -$981,957.97 | -10.4% |
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 10,155 | $107,033.7 | $94,339.95 | -$12,693.75 | -11.86% |
Bulldog Investors Bulldog Investors LLP | 400,343 | $4.26M | $3.88M | -$383,546.06 | -9.01% |